- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 1. Estimation of the Simple Linear Regression Model
CFA Practice Question
What is the effect of a violation of the classical regression assumptions?
II. Low predictive power of the model.
III. Invalid confidence intervals.
I. Invalid hypothesis test.
II. Low predictive power of the model.
III. Invalid confidence intervals.
Correct Answer: I, II and III
All of these effects happen when there is a violation of the regression assumptions.
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